Hugh Snow returned merchandise to Farley Co.The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:
A) Debit Accounts Payable
B) Credit to Purchase Returns and Allowances
C) Debit to Account Receivable
D) Debit Sales Returns and Allowances

Question

Quizplus · Accepted Answer

When merchandise is returned by a customer, the company records a debit to Sales Returns and Allowances to reduce sales revenue and reflect the return.

Hugh Snow Returned Merchandise to Farley Co